Described here is the outline of questions and answers exchanged between institutional investors and security analysts and Tetsuhiro Kida, Director and Senior Executive Officer of T&D Holdings, Inc. at a telephone conference held on February 12, 2010. Some additions and corrections were made to make the contents easier for readers to understand.

Q.	How did Daido Life perform in terms of the new policy amount and the surrender and lapse amount?
A.	Although conditions remain difficult, some signs of modest recovery are now emerging. In 3Q2009 (October-December), Daido Life saw the new policy amount begin to increase and the surrender and lapse amount start to decrease compared to 3Q2008.

Q.	How are the bond durations trending?
A.	The bond duration is 3.95 years for Daido and 10.39 years for Taiyo.

Q.	During the October-December quarter, Daido Life reported a year-on-year increase in the new policy amount, but the number of new policies actually declined. Why?
A.	New policy amount per policy increased, while the number of new policies decreased.

Q.	Why did operating expenses for the October-December quarter decline at Daido Life in year-on-year terms?
A.	Lower operating expenses were partly due to the impact of a decrease in performance-linked bonuses (winter bonuses were paid in December).

Q.	What was the value of in-force business on EEV (European Embedded Value) as of December 31, 2009?
A.	We have not calculated the exact number. However, we have estimated it assuming the market conditions prevailing on December 31, 2009, based on the policy amount in force as of September 30, 2009. In terms of interest rates at December 31, 2009, long-term interest rates had increased on a slightly sharper trajectory from September 30, 2009, while short- and medium-term interest rates had declined and bond volatility had increased. Consequently, the value of in-force business had increased by 2-3% from 465.6 billion yen as of September 30, 2009.

Q.	Daido Life has seen the decrease in annualized premiums of new policies for individual insurance (excluding individual annuities) gradually become smaller. Are annualized premiums of new policies now increasing?
A.	The new policy amount returned to positive growth in the October-December quarter. However, the product mix for the new policy amount has shifted from high-premium term life insurance policies to low-premium term life insurance policies. Consequently, annualized premiums of new policies were decreasing year on year in the October-December quarter.